Offshoring finance and accounting tasks is becoming increasingly popular among US CPA and accounting firms. By offshoring these tasks, firms can save costs, increase efficiency, and provide better value to their clients. However, measuring the return on investment (ROI) of offshoring can be challenging.
In this article, we will discuss how to measure the ROI of finance and accounting offshoring for US CPA and accounting firms.
Let’s start!
Tips to Measure ROI of Finance Offshoring
The below tips and ideas will help you measure the ROI of finance and accounting offshoring for your US accounting firm:
#1 Define the Goals of Offshoring
Before measuring the ROI of offshoring, it is important to define the goals of offshoring. What are the firm’s objectives in offshoring finance and accounting tasks? Is it to reduce costs, increase efficiency, or provide better value to clients? Defining clear goals will help the firm to identify the relevant metrics for measuring ROI.
Watch what the leading bookkeeping firm of South Florida has to say about Finsmart Accounting
#2 Determine the Costs of Offshoring
The first step in measuring ROI is to determine the costs of offshoring. This includes the costs of hiring and training offshore staff, setting up infrastructure, and any other expenses associated with offshoring. These costs should be compared to the costs of performing the tasks in-house or outsourcing them to a local provider.
Want to upsell? Here are 6 upselling tips for existing clients.
#3 Identify the Metrics for Measuring ROI
Once the goals and costs of offshoring have been determined, the next step is to identify the metrics for measuring ROI. These metrics should be aligned with the firm’s goals and should be specific, measurable, and relevant. Some common metrics for measuring the ROI of offshoring include:
#3.1 Cost savings
This is one of the most common metrics for measuring ROI. The firm can calculate the difference between the costs of performing the tasks in-house or outsourcing them locally and the costs of offshoring them.
#3.2 Time savings
Offshoring can also result in time savings, as offshore staff can work during different time zones and handle tasks outside of regular business hours. The firm can measure the time savings by comparing the time spent on tasks before and after offshoring.
#3.3 Quality of work
Offshoring can improve the quality of work by leveraging the expertise of offshore staff. The firm can measure the quality of work by comparing the accuracy and timeliness of the work performed before and after offshoring.
#3.4 Client satisfaction
Offshoring can also improve client satisfaction by providing better value and faster turnaround times. The firm can measure client satisfaction by conducting surveys and analyzing feedback from clients.
#4 Monitor and Analyze the Metrics
Once the metrics for measuring ROI have been identified, the firm should monitor and analyze them on an ongoing basis. This will help the firm to identify any areas that need improvement and make necessary adjustments. The firm should also compare the metrics to the goals of offshoring to ensure that they are aligned.
Discover the best ways of managing client expectations in accounting industry.
Adjust the Offshoring Strategy if Necessary
If the metrics show that the offshoring strategy is not meeting the firm’s goals, adjustments may be necessary. This could include changing the tasks that are offshored, hiring additional offshore staff, or changing the offshore service provider.
Discuss Accounting Offshoring with Finsmart
Measuring the ROI of finance and accounting offshoring for US CPA and accounting firms requires a clear understanding of the goals and costs of offshoring, as well as the identification of relevant metrics for measuring ROI. By monitoring and analyzing these metrics on an ongoing basis, firms can ensure that their offshoring strategy is aligned with their goals and making a positive impact on the bottom line
Connect for Accounting Offshoring Support
Finsmart Accounting with its 15 years of outsourced accounting space uses its own proprietary framework called DPPT – Definition, Process, Precision & TAT that has been the success mantra for supporting the firms in the US to stay ahead of the competition.
By partnering with an experienced offshore bookkeeping services provider in India like Finsmart Accounting, CPA firms can access a team of professionals who are knowledgeable about the latest technologies, up to date with ever-evolving accounting norms, and also domain experts in US accounting.
Have queries to ask? Drop them in the comments or email us at connect@finsmartaccounting.com to get a quick reply from our team of finance and accounting experts.
Share your thoughts
Would you like to know more about the DPPT framework or have you or your company worked with offshore accountants during the accounting talent crunch? What was the experience like? Join the conversation below or check out our recent blogs on business growth and offshore hiring:
Here are the services that are widely subscribed by our clients:
India entry services for global MNCs
Accounting outsourcing services in India
Accounts payable and receivable services in India
